Tag Archives: Base Metal

Australian stocks extended gains as commodity-exposed companies shone | Instant News


April 7 (Reuters) – Australian stocks on Wednesday extended gains for a fourth session, driven by commodity-exposed stocks to strong crude oil and metals prices and as investors bet on improving prospects for a global economic recovery.

The S & P / ASX 200 index rose 0.5% to 6,920.2 points in early trading, hitting a new high since mid-February. Elsewhere in Asia, Nikkei futures were up 0.4%.

On Tuesday, the International Monetary Fund raised its forecast for global economic growth to 6% this year, a level not seen since the 1970s.

Strong economic data from China and the United States lifted oil prices by 1%, while a weaker dollar and lower US Treasury yields boosted bullion.

Meanwhile copper prices rose on supply concerns after a major Chilean producer closed its borders following a spike in coronavirus infections.

Strong commodities lifted sentiment despite the pullback on Wall Street overnight. All three major US stock indexes closed in the red, retreating from previous session record highs, while Treasury yields edged down.

The ASX 300 metals and mining index was up 0.67%, while the gold sub-index was up 1%, led by Resolute Mining Ltd. which was up 4.4%.

Tech shares rose 1.8%, led by EML Payments Ltd, up 10.7%, followed by NEXTDC Ltd which rose 3.6%.

In New Zealand, the benchmark S & P / NZX 50 index was up 0.68% to 12,484.3.

The highest percentage gainer in the benchmark index was Contact Energy Ltd, up 2.8%, followed by Pushpay Holdings Ltd and Air New Zealand Ltd which rose 2.5% and 1.9%, respectively.

Reporting by Shruti Sonal in Bengaluru, Editing by Sherry Jacob-Phillips

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Australian stocks were slightly higher as a blockage of the Suez Canal lifted commodities | Instant News


* Shipping rates increased, tankers were diverted due to blockages

* Miners jumped nearly 2%, the biggest gain since March 12

* Tech stocks are down, Afterpay is down almost 3%

March 29 (Reuters) – Australian stocks edged up on Monday as higher commodity prices lifted miners and energy stocks amid concerns that global supplies of crude oil and refined products could be disrupted for weeks as workers try to remove containers blocking the canal Suez.

The S & P / ASX 200 index was up 0.1% at 6,830.40 by 0015 GMT. The benchmark closed 0.5% higher on Friday.

Also raising interest in risk is a report on Monday showing that the country expects to post a record A $ 136 billion ($ 103.85 billion) in iron ore exports this financial year as signs global steelmaking is recovering from its induced decline. pandemic.

Copper prices rose in the previous session as markets worried about the impact of costs for transporting industrial metals after the blockage of the Suez Canal.

The mining sub-index jumped nearly 2% on its biggest intraday percentage gain in more than two weeks. Rio Tinto and BHP Group, which have significant copper mining operations, increased by 2% and 2.3%, respectively.

Energy stocks rose 1.4% as oil prices surged on concerns over the Suez Canal. Heavyweight sector Woodside Petroleum was up nearly 1% while Santos was up 2.3%.

Sentiment was weak across Asia with Nikkei futures down 0.5% to 29,295 points, while S&P 500 E-mini futures were down 0.4%.

Tech stocks held off gains in the index, with top loser Megaport’s percentage dropping 3.4%, followed by buy-now-pay-later giant Afterpay, which slipped 2.8%.

Treasury Wine Estates slumped 3.8% after the company said it would face high anti-dumping tariffs on Australian wine exports to China.

In New Zealand, the benchmark S & P / NZX 50 index was up 0.58% to 12,420.3, with Meridian Energy up 3.5%.

Synlait Milk was the biggest loser, dropping as much as 4.2% after the dairy company posted a 76% drop in first-half profit and marked headwinds for fiscal 2021.

$ 1 = 1.3096 Australian dollars Reporting by Aditya Munjuluru; Editing by Sherry Jacob-Phillips

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High iron ore prices spark mining, protest in Tasmania Australia | Instant News


MELBOURNE (Reuters) – High iron ore prices have paved the way for mining in Australia’s southern state of Tasmania, where the Venture Resources development project is under pressure from conservationists over the potential impact on wilderness areas.

Australia is the world’s largest producer of iron ore, nearly all of it originating from the ancient Pilbara region in the western part of the country.

But strong Chinese demand and Brazil’s supply constraints have pushed iron ore prices to decade highs above $ 175 per tonne this quarter, allowing projects in less conventional areas to become economical.

Venture Minerals expects its Riley project to create more than 100 jobs, and inject about A $ 100 million into the state economy over the life of the mine. The share of base metals explorer has risen more than 50% since early December to A $ 0.058.

The company is on track to deliver its first shipment of the Riley project in the west of the state in the second quarter, after raising A $ 10 million ($ 7.8 million) to build a processing plant and haul roads, according to a presentation Venture Minerals submitted to Australian Stock Exchange on Thursday.

The project, however, has angered conservationists with protesters returning to the area this week, as the Bob Brown Foundation called for the area to be registered as World Heritage.

A Venture Minerals spokesperson said the miners did not anticipate any schedule delays, and that they had all the necessary environmental approvals and planned to rehabilitate the mine after the mine’s two-year life.

Climber Anna Brozek, 23, climbed a 10 meter long pole and remained suspended above the gate, blocking access to the mining site on Thursday before she was arrested, campaigner Scott Jordan told Reuters.

The foundation is concerned that clearing land could increase the risk of wildfires by lowering water levels and because of the threat of haul roads to endangered wildlife including the Tasmanian devil and the tailed quail, Jordan said.

($ 1 = 1.2780 Australian dollars)

Reporting by Melanie Burton, Editing by Sherry Jacob-Phillips

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UPDATE 1-Contractor asked Australia to review asset sale to Tianqi Lithium China | Instant News


(Change date, add timeline, add contractor’s comments)

MELBOURNE March 11 (Reuters) – An Australian mining services contractor locked in a legal dispute with China’s Tianqi Lithium Corp over a failed payment has asked the Foreign Investment Review Agency to examine the related sale, a company director said on Thursday.

Perth-based MSP Engineering has asked the FIRB to review part of the sale of Tianqi’s Australian lithium business to nickel miner IGO after Tianqi refused to pay him to build a battery-grade lithium processing plant in Western Australia.

This week, the Western Australian Supreme Court ruled that Tianqi, one of the world’s largest producers of the lithium chemical used in electric vehicle batteries, must pay A $ 38.9 million ($ 30 million) in arrears. Tianqi said he would appeal.

The FIRB application comes at a time when trade tensions between China and Australia are rising.

“If we are not completed as part of that sale, then we don’t think it represents the right behavior by foreign investors,” director Craig Burton told Reuters.

MSP has had to stop other lines of business from paying its contractors and subcontractors for months of work and has reduced its staff to four out of 400 employees pending payment, he said.

“This has a bad impact on our business. We just want Tianqi to do the right thing and pay the money spent on the project. “

Tianqi said in a filing on Wednesday that it would challenge the verdict that has given up to March 15 to pay money, including principal and interest. His counter claims included that the project was over budget.

The FIRB did not have any comments yet. The IGO declined to comment.

Tianqi’s assets include a 51% stake in the Greenbushes lithium mine and a 100% stake in the Kwinana lithium plant.

The facility was heralded as the largest of its kind before the first phase commissioning of 24,000 tonnes was halted a year ago as Tianqi flagged liquidity problems due to plunging lithium prices.

The debt-laden company in December secured a strategic investor in the form of Australian nickel miner IGO Ltd for 49% of its business, paving the way for a $ 3 billion loan extension.

Tianqi warned that filing the verdict could adversely affect the liquidity and factory of Kwinana.

The facility is likely to start operating in the fourth quarter of 2021, Daiwa Capital Markets said in a January note, citing Tianqi management at a conference.

Tianqi did not immediately respond to a request for comment about the intended launch date.

$ 1 = 1.2932 Australian dollars Report by Tom Daly and Melanie Burton at MELBOURNE; Edited by Mark Potter and Stephen Coates

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Australia, the New Zealand dollar hovers near multi-year highs amid a commodity boom | Instant News


SYDNEY, Feb 23 (Reuters) – The Australian and New Zealand dollars were little changed on Tuesday, hovering near multi-year highs amid surging commodity prices and a weak dollar, while bond yields were steady.

The Aussie dollar is up 0.14% higher at $ 0.7925 after crossing the $ 0.79 mark for the first time since early 2018 the previous day. The currency’s next target is $ 0.80, said the strategist.

The kiwi dollar fell 0.05% against the greenback to $ 0.7324, having stretched as far as $ 0.7343 in the previous session, the highest since April 2018, as yields surged and S&P upgraded New Zealand’s rating to AA +, citing surprising strength from the economy.

Rising prices for materials from oil and copper to wood and powdered milk have pushed currencies such as the Australian and New Zealand dollars to their highest levels in nearly three years.

Copper prices surged above $ 9,000 per tonne for the first time since 2011 on Monday, while nickel traded above $ 20,000 per tonne for the first time since 2014.

“Dividend announcements for Australian mining companies that are likely to declare in US $ and offer payouts in A $, and the prospect of a larger dividend at the end of the year adds to the A $ demand story,” Westpac analysts said in a note.

The ten-year bond yield in Australia fell four basis points to 1.55% on Tuesday after rising sharply in recent days as fears of faster global inflation have hit bond markets.

The three-year bond is up 2 ticks to 99.7550, and the 10-year bond is up 4 ticks 98.4350.

In New Zealand, the 10-year yield was up one basis point at 1.65%, after hitting 1.72%, the highest since March 23 as markets await this year’s first monetary policy meeting on February 24.

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